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Indiana Senate Bill SB0254

Indiana 2024 Regular Session

Indiana Senate Bill SB0254 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 254
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 7.1-3.
77 Synopsis: Transit development district three-way permits. Provides for
88 the issuance of 25 new three-way alcoholic beverage permits to
99 restaurants located: (1) within a transit development district; or (2) not
1010 more than 1,500 feet from the boundary of a transit development
1111 district.
1212 Effective: July 1, 2024.
1313 Pol Jr.
1414 January 11, 2024, read first time and referred to Committee on Public Policy.
1515 2024 IN 254—LS 6902/DI 87 Introduced
1616 Second Regular Session of the 123rd General Assembly (2024)
1717 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
1818 Constitution) is being amended, the text of the existing provision will appear in this style type,
1919 additions will appear in this style type, and deletions will appear in this style type.
2020 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2121 provision adopted), the text of the new provision will appear in this style type. Also, the
2222 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2323 a new provision to the Indiana Code or the Indiana Constitution.
2424 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2525 between statutes enacted by the 2023 Regular Session of the General Assembly.
2626 SENATE BILL No. 254
2727 A BILL FOR AN ACT to amend the Indiana Code concerning
2828 alcohol and tobacco.
2929 Be it enacted by the General Assembly of the State of Indiana:
3030 1 SECTION 1. IC 7.1-3-19-17, AS AMENDED BY P.L.220-2023,
3131 2 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3232 3 JULY 1, 2024]: Sec. 17. (a) This section applies to a permit issued
3333 4 under IC 7.1-3-20-16(d), IC 7.1-3-20-16(g), IC 7.1-3-20-16(k) through
3434 5 IC 7.1-3-20-16(q), IC 7.1-3-20-16(r), or IC 7.1-3-20-16.8 if a
3535 6 municipal legislative body has adopted an ordinance requiring a formal
3636 7 written commitment as a condition of eligibility for a permit, as
3737 8 described in subsection (b).
3838 9 (b) As a condition of eligibility for a permit, the applicant must
3939 10 enter into a formal written commitment with the municipal legislative
4040 11 body regarding the character or type of business that will be conducted
4141 12 on the permit premises. The municipal legislative body must adopt an
4242 13 ordinance approving the formal written commitment. A formal written
4343 14 commitment is binding on the permit holder and on any lessee or
4444 15 proprietor of the permit premises. When an application for renewal of
4545 16 a permit is filed, the applicant shall forward a copy of the application
4646 17 to the municipal legislative body. The municipal legislative body shall
4747 2024 IN 254—LS 6902/DI 87 2
4848 1 receive notice of any filings, hearings, or other proceedings on the
4949 2 application for renewal from the applicant.
5050 3 (c) A formal written commitment may be modified by the municipal
5151 4 legislative body with the agreement of the permit holder.
5252 5 (d) Except as provided in subsection (f), the amount of time that a
5353 6 formal written commitment is valid may not be limited or restricted.
5454 7 (e) A formal written commitment is terminated at the time a permit
5555 8 is revoked or not renewed.
5656 9 (f) If the character or type of business violates the formal written
5757 10 commitments, the municipality may adopt a recommendation to the
5858 11 local board and the commission to:
5959 12 (1) deny the permit holder's application to renew the permit; or
6060 13 (2) revoke the permit holder's permit.
6161 14 (g) The commission shall consider evidence at the hearing on the
6262 15 issue of whether the business violated the formal written commitments.
6363 16 If the commission determines there is sufficient evidence that the
6464 17 commitments have been violated by the permittee, the commission
6565 18 may:
6666 19 (1) deny the application to renew the permit; or
6767 20 (2) revoke the permit;
6868 21 as applicable.
6969 22 SECTION 2. IC 7.1-3-20-16, AS AMENDED BY P.L.220-2023,
7070 23 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7171 24 JULY 1, 2024]: Sec. 16. (a) A permit that is authorized by this section
7272 25 may be issued without regard to the quota provisions of IC 7.1-3-22.
7373 26 (b) The commission may issue a three-way permit to sell alcoholic
7474 27 beverages for on-premises consumption only to an applicant who is the
7575 28 proprietor, as owner or lessee, or both, of a restaurant facility in the
7676 29 passenger terminal complex of a publicly owned airport. A permit
7777 30 issued under this subsection shall not be transferred to a location off
7878 31 the airport premises.
7979 32 (c) Except as provided in sections 16.3 and 16.4 of this chapter, the
8080 33 commission may issue a three-way, two-way, or one-way permit to sell
8181 34 alcoholic beverages for on-premises consumption only to an applicant
8282 35 who is the proprietor, as owner or lessee, or both, of a restaurant within
8383 36 a redevelopment project consisting of a building or group of buildings
8484 37 that:
8585 38 (1) was formerly used as part of a union railway station;
8686 39 (2) has been listed in or is within a district that has been listed in
8787 40 the federal National Register of Historic Places maintained
8888 41 pursuant to the National Historic Preservation Act of 1966, as
8989 42 amended; and
9090 2024 IN 254—LS 6902/DI 87 3
9191 1 (3) has been redeveloped or renovated, with the redevelopment or
9292 2 renovation being funded in part with grants from the federal,
9393 3 state, or local government.
9494 4 A permit issued under this subsection shall not be transferred to a
9595 5 location outside of the redevelopment project.
9696 6 (d) Subject to section 16.1 of this chapter and except as provided in
9797 7 section 16.3 of this chapter, the commission may issue a three-way,
9898 8 two-way, or one-way permit to sell alcoholic beverages for on-premises
9999 9 consumption only to an applicant who is the proprietor, as owner or
100100 10 lessee, or both, of a restaurant:
101101 11 (1) on land; or
102102 12 (2) in a historic river vessel;
103103 13 within a municipal riverfront development project funded in part with
104104 14 state and city money. The ownership of a permit issued under this
105105 15 subsection and the location for which the permit was issued may not be
106106 16 transferred. The legislative body of the municipality in which the
107107 17 municipal riverfront development project is located shall recommend
108108 18 to the commission sites that are eligible to be permit premises. The
109109 19 commission shall consider, but is not required to follow, the municipal
110110 20 legislative body's recommendation in issuing a permit under this
111111 21 subsection. A permit holder and any lessee or proprietor of the permit
112112 22 premises are subject to the formal written commitment required under
113113 23 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if
114114 24 business operations cease at the permit premises for more than six (6)
115115 25 months, the permit shall revert to the commission. The permit holder
116116 26 is not entitled to any refund or other compensation.
117117 27 (e) Except as provided in sections 16.3 and 16.4 of this chapter, the
118118 28 commission may issue a three-way, two-way, or one-way permit to sell
119119 29 alcoholic beverages for on-premises consumption only to an applicant
120120 30 who is the proprietor, as owner or lessee, or both, of a restaurant within
121121 31 a renovation project consisting of:
122122 32 (1) a building that:
123123 33 (A) was formerly used as part of a passenger and freight
124124 34 railway station; and
125125 35 (B) was built before 1900; or
126126 36 (2) a complex of buildings that:
127127 37 (A) is part of an economic development area established under
128128 38 IC 36-7-14; and
129129 39 (B) includes, as part of the renovation project, the use and
130130 40 repurposing of two (2) or more buildings and structures that
131131 41 are:
132132 42 (i) at least seventy-five (75) years old; and
133133 2024 IN 254—LS 6902/DI 87 4
134134 1 (ii) located at a site at which manufacturing previously
135135 2 occurred over a period of at least seventy-five (75) years.
136136 3 The permit authorized by this subsection may be issued without regard
137137 4 to the proximity provisions of IC 7.1-3-21-11.
138138 5 (f) Except as provided in section 16.3 of this chapter, the
139139 6 commission may issue a three-way permit for the sale of alcoholic
140140 7 beverages for on-premises consumption at a cultural center for the
141141 8 visual and performing arts to the following:
142142 9 (1) A town having a population of more than twenty-three
143143 10 thousand (23,000) and less than twenty-three thousand nine
144144 11 hundred (23,900) located in a county having a population of more
145145 12 than four hundred thousand (400,000) and less than seven
146146 13 hundred thousand (700,000).
147147 14 (2) A city that has an indoor theater as described in section 26 of
148148 15 this chapter.
149149 16 (g) Except as provided in section 16.3 of this chapter, the
150150 17 commission may issue not more than fifteen (15) new three-way,
151151 18 two-way, or one-way permits to sell alcoholic beverages for
152152 19 on-premises consumption to applicants, each of whom must be the
153153 20 proprietor, as owner or lessee, or both, of a restaurant located within a
154154 21 district, or not more than one thousand five hundred (1,500) feet from
155155 22 a district, that meets the following requirements:
156156 23 (1) The district has been listed in the National Register of Historic
157157 24 Places maintained under the National Historic Preservation Act
158158 25 of 1966, as amended.
159159 26 (2) A county courthouse is located within the district.
160160 27 (3) A historic opera house listed on the National Register of
161161 28 Historic Places is located within the district.
162162 29 (4) A historic jail and sheriff's house listed on the National
163163 30 Register of Historic Places is located within the district.
164164 31 The legislative body of the municipality in which the district is located
165165 32 shall recommend to the commission sites that are eligible to be permit
166166 33 premises. The commission shall consider, but is not required to follow,
167167 34 the municipal legislative body's recommendation in issuing a permit
168168 35 under this subsection. An applicant is not eligible for a permit if, less
169169 36 than two (2) years before the date of the application, the applicant sold
170170 37 a retailer's permit that was subject to IC 7.1-3-22 and that was for
171171 38 premises located within the district described in this section or within
172172 39 one thousand five hundred (1,500) feet of the district. The ownership
173173 40 of a permit issued under this subsection and the location for which the
174174 41 permit was issued shall not be transferred. A permit holder and any
175175 42 lessee or proprietor of the permit premises is subject to the formal
176176 2024 IN 254—LS 6902/DI 87 5
177177 1 written commitment required under IC 7.1-3-19-17. Notwithstanding
178178 2 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
179179 3 permit premises for more than six (6) months, the permit shall revert
180180 4 to the commission. The permit holder is not entitled to any refund or
181181 5 other compensation. The total number of active permits issued under
182182 6 this subsection may not exceed fifteen (15) at any time. The cost of an
183183 7 initial permit issued under this subsection is twenty-five thousand
184184 8 dollars ($25,000).
185185 9 (h) Except as provided in section 16.3 of this chapter, the
186186 10 commission may issue a three-way permit for the sale of alcoholic
187187 11 beverages for on-premises consumption to an applicant who will locate
188188 12 as the proprietor, as owner or lessee, or both, of a restaurant within an
189189 13 economic development area under IC 36-7-14 in:
190190 14 (1) a town having a population of more than twenty thousand
191191 15 (20,000); or
192192 16 (2) a city having a population of more than forty-nine thousand
193193 17 four hundred (49,400) and less than fifty thousand (50,000);
194194 18 located in a county having a population of more than one hundred
195195 19 twenty thousand (120,000) and less than one hundred thirty thousand
196196 20 (130,000). The commission may issue not more than five (5) licenses
197197 21 under this section to premises within a municipality described in
198198 22 subdivision (1) and not more than five (5) licenses to premises within
199199 23 a municipality described in subdivision (2). The commission shall
200200 24 conduct an auction of the permits under IC 7.1-3-22-9, except that the
201201 25 auction may be conducted at any time as determined by the
202202 26 commission. Notwithstanding any other law, the minimum bid for an
203203 27 initial license under this subsection is thirty-five thousand dollars
204204 28 ($35,000), and the renewal fee for a license under this subsection is one
205205 29 thousand three hundred fifty dollars ($1,350). Before the district
206206 30 expires, a permit issued under this subsection may not be transferred.
207207 31 After the district expires, a permit issued under this subsection may be
208208 32 renewed, and the ownership of the permit may be transferred, but the
209209 33 permit may not be transferred from the permit premises.
210210 34 (i) After June 30, 2006, and except as provided in section 16.3 of
211211 35 this chapter, the commission may issue not more than five (5) new
212212 36 three-way, two-way, or one-way permits to sell alcoholic beverages for
213213 37 on-premises consumption to applicants, each of whom must be the
214214 38 proprietor, as owner or lessee, or both, of a restaurant located within a
215215 39 district, or not more than five hundred (500) feet from a district, that
216216 40 meets all of the following requirements:
217217 41 (1) The district is within an economic development area, an area
218218 42 needing redevelopment, or a redevelopment district as established
219219 2024 IN 254—LS 6902/DI 87 6
220220 1 under IC 36-7-14.
221221 2 (2) A unit of the National Park Service is partially located within
222222 3 the district.
223223 4 (3) An international deep water seaport is located within the
224224 5 district.
225225 6 An applicant is not eligible for a permit under this subsection if, less
226226 7 than two (2) years before the date of the application, the applicant sold
227227 8 a retailers' permit that was subject to IC 7.1-3-22 and that was for
228228 9 premises located within the district described in this subsection or
229229 10 within five hundred (500) feet of the district. A permit issued under this
230230 11 subsection may not be transferred. If the commission issues five (5)
231231 12 new permits under this subsection, and a permit issued under this
232232 13 subsection is later revoked or is not renewed, the commission may
233233 14 issue another new permit, as long as the total number of active permits
234234 15 issued under this subsection does not exceed five (5) at any time. The
235235 16 commission shall conduct an auction of the permits under
236236 17 IC 7.1-3-22-9, except that the auction may be conducted at any time as
237237 18 determined by the commission.
238238 19 (j) Subject to section 16.2 of this chapter and except as provided in
239239 20 section 16.3 of this chapter, the commission may issue not more than
240240 21 six (6) new three-way, two-way, or one-way permits to sell alcoholic
241241 22 beverages for on-premises consumption only to an applicant who is the
242242 23 proprietor, as owner or lessee, or both, of a restaurant on land within a
243243 24 municipal lakefront development project. A permit issued under this
244244 25 subsection may not be transferred. If the commission issues six (6) new
245245 26 permits under this subsection, and a permit issued under this subsection
246246 27 is later revoked or is not renewed, the commission may issue another
247247 28 new permit, as long as the total number of active permits issued under
248248 29 this subsection does not exceed six (6) at any time. The commission
249249 30 shall conduct an auction of the permits under IC 7.1-3-22-9, except that
250250 31 the auction may be conducted at any time as determined by the
251251 32 commission. Notwithstanding any other law, the minimum bid for an
252252 33 initial permit under this subsection is ten thousand dollars ($10,000).
253253 34 (k) Except as provided in section 16.3 of this chapter, the
254254 35 commission may issue not more than nine (9) new three-way permits
255255 36 to sell alcoholic beverages for on-premises consumption to applicants,
256256 37 each of whom must be a proprietor, as owner or lessee, or both, of a
257257 38 restaurant located:
258258 39 (1) within a motorsports investment district (as defined in
259259 40 IC 5-1-17.5-11); or
260260 41 (2) not more than one thousand five hundred (1,500) feet from a
261261 42 motorsports investment district.
262262 2024 IN 254—LS 6902/DI 87 7
263263 1 The ownership of a permit issued under this subsection and the location
264264 2 for which the permit was issued shall not be transferred. If the
265265 3 commission issues nine (9) new permits under this subsection, and a
266266 4 permit issued under this subsection is later revoked or is not renewed,
267267 5 the commission may issue another new permit, as long as the total
268268 6 number of active permits issued under this subsection does not exceed
269269 7 nine (9) at any time. A permit holder and any lessee or proprietor of the
270270 8 permit premises are subject to the formal written commitment required
271271 9 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1-3.5 and IC 7.1-3-1.1,
272272 10 if business operations cease at the permit premises for more than six
273273 11 (6) months, the permit shall revert to the commission. The permit
274274 12 holder is not entitled to any refund or other compensation.
275275 13 (l) Except as provided in section 16.3 of this chapter, the
276276 14 commission may issue not more than two (2) new three-way permits to
277277 15 sell alcoholic beverages for on-premises consumption for premises
278278 16 located within a qualified motorsports facility (as defined in
279279 17 IC 5-1-17.5-14). The ownership of a permit issued under this
280280 18 subsection and the location for which the permit was issued shall not
281281 19 be transferred. If the commission issues two (2) new permits under this
282282 20 subsection, and a permit issued under this subsection is later revoked
283283 21 or is not renewed, the commission may issue another new permit, as
284284 22 long as the total number of active permits issued under this subsection
285285 23 does not exceed two (2) at any time. A permit holder and any lessee or
286286 24 proprietor of the permit premises are subject to the formal written
287287 25 commitment required under IC 7.1-3-19-17. Notwithstanding
288288 26 IC 7.1-3-1-3.5 and IC 7.1-3-1.1, if business operations cease at the
289289 27 permit premises for more than six (6) months, the permit shall revert
290290 28 to the commission. The permit holder is not entitled to any refund or
291291 29 other compensation.
292292 30 (m) Except as provided in section 16.3 of this chapter, the
293293 31 commission may issue not more than three (3) new three-way permits
294294 32 to sell alcoholic beverages for on-premises consumption in the city of
295295 33 Auburn. The ownership of a permit issued under this subsection and
296296 34 the location for which the permit was issued shall not be transferred. If
297297 35 the commission issues three (3) new permits under this subsection, and
298298 36 a permit issued under this subsection is later revoked or is not renewed,
299299 37 the commission may issue another new permit, as long as the total
300300 38 number of active permits issued under this subsection does not exceed
301301 39 three (3) at any time. A permit holder and any lessee or proprietor of
302302 40 the permit premises are subject to the formal written commitment
303303 41 required under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if
304304 42 business operations cease at the permit premises for more than six (6)
305305 2024 IN 254—LS 6902/DI 87 8
306306 1 months, the permit shall revert to the commission. The permit holder
307307 2 is not entitled to any refund or other compensation.
308308 3 (n) Except as provided in section 16.3 of this chapter, the
309309 4 commission may issue not more than three (3) new three-way permits
310310 5 to sell alcoholic beverages for on-premises consumption in the city of
311311 6 Kendallville. The ownership of a permit issued under this subsection
312312 7 and the location for which the permit was issued shall not be
313313 8 transferred. If the commission issues three (3) new permits under this
314314 9 subsection, and a permit issued under this subsection is later revoked
315315 10 or is not renewed, the commission may issue another new permit, as
316316 11 long as the total number of active permits issued under this subsection
317317 12 does not exceed three (3) at any time. A permit holder and any lessee
318318 13 or proprietor of the permit premises are subject to the formal written
319319 14 commitment required under IC 7.1-3-19-17. Notwithstanding
320320 15 IC 7.1-3-1.1, if business operations cease at the permit premises for
321321 16 more than six (6) months, the permit shall revert to the commission.
322322 17 The permit holder is not entitled to any refund or other compensation.
323323 18 (o) Except as provided in section 16.3 of this chapter, the
324324 19 commission may issue not more than two (2) new three-way permits to
325325 20 sell alcoholic beverages for on-premises consumption in the city of
326326 21 Warsaw. The ownership of a permit issued under this subsection and
327327 22 the location for which the permit was issued shall not be transferred. If
328328 23 the commission issues two (2) new permits under this subsection, and
329329 24 a permit issued under this subsection is later revoked or is not renewed,
330330 25 the commission may issue another new permit, as long as the total
331331 26 number of active permits issued under this subsection does not exceed
332332 27 two (2) at any time. A permit holder and any lessee or proprietor of the
333333 28 permit premises are subject to the formal written commitment required
334334 29 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business
335335 30 operations cease at the permit premises for more than six (6) months,
336336 31 the permit shall revert to the commission. The permit holder is not
337337 32 entitled to any refund or other compensation.
338338 33 (p) Except as provided in section 16.3 of this chapter, the
339339 34 commission may issue not more than one (1) new three-way permit to
340340 35 sell alcoholic beverages for on-premises consumption in the town of
341341 36 Winona Lake. The ownership of a permit issued under this subsection
342342 37 and the location for which the permit was issued shall not be
343343 38 transferred. If the commission issues one (1) new permit under this
344344 39 subsection, and a permit issued under this subsection is later revoked
345345 40 or is not renewed, the commission may issue another new permit, as
346346 41 long as the total number of active permits issued under this subsection
347347 42 does not exceed one (1) at any time. A permit holder and any lessee or
348348 2024 IN 254—LS 6902/DI 87 9
349349 1 proprietor of the permit premises are subject to the formal written
350350 2 commitment required under IC 7.1-3-19-17. Notwithstanding
351351 3 IC 7.1-3-1.1, if business operations cease at the permit premises for
352352 4 more than six (6) months, the permit shall revert to the commission.
353353 5 The permit holder is not entitled to any refund or other compensation.
354354 6 (q) Except as provided in section 16.3 of this chapter, the
355355 7 commission may issue not more than one (1) new three-way permit to
356356 8 sell alcoholic beverages for on-premises consumption in the town of
357357 9 Syracuse. The ownership of a permit issued under this subsection and
358358 10 the location for which the permit was issued shall not be transferred. If
359359 11 the commission issues one (1) new permit under this subsection, and
360360 12 a permit issued under this subsection is later revoked or is not renewed,
361361 13 the commission may issue another new permit, as long as the total
362362 14 number of active permits issued under this subsection does not exceed
363363 15 one (1) at any time. A permit holder and any lessee or proprietor of the
364364 16 permit premises are subject to the formal written commitment required
365365 17 under IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business
366366 18 operations cease at the permit premises for more than six (6) months,
367367 19 the permit shall revert to the commission. The permit holder is not
368368 20 entitled to any refund or other compensation.
369369 21 (r) The commission may issue not more than twenty-five (25)
370370 22 new three-way permits to sell alcoholic beverages for on-premises
371371 23 consumption to applicants, each of whom must be a proprietor, as
372372 24 owner or lessee, or both, of a restaurant located:
373373 25 (1) within; or
374374 26 (2) not more than one thousand five hundred (1,500) feet from
375375 27 the boundary of;
376376 28 a transit development district established under IC 36-7.5-4.5. The
377377 29 ownership of a permit issued under this subsection and the location
378378 30 for which the permit was issued shall not be transferred. If the
379379 31 commission issues twenty-five (25) new permits under this
380380 32 subsection, and a permit issued under this subsection is later
381381 33 revoked or not renewed, the commission may issue another new
382382 34 permit, as long as the total number of active permits issued under
383383 35 this subsection does not exceed twenty-five (25) at any time. A
384384 36 permit holder and any lessee or proprietor of the permit premises
385385 37 are subject to the formal written commitment required under
386386 38 IC 7.1-3-19-17. Notwithstanding IC 7.1-3-1.1, if business operations
387387 39 cease at the permit premises for more than six (6) months, the
388388 40 permit shall revert to the commission. The permit holder is not
389389 41 entitled to any refund or other compensation.
390390 2024 IN 254—LS 6902/DI 87